Analyzing Daikin Industries (OTCMKTS:DKILY) and Bel Fuse (NASDAQ:BELFB)

Daikin Industries (OTCMKTS:DKILYGet Free Report) and Bel Fuse (NASDAQ:BELFBGet Free Report) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Profitability

This table compares Daikin Industries and Bel Fuse’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Daikin Industries 5.51% 9.10% 5.14%
Bel Fuse 7.84% 12.97% 5.81%

Risk and Volatility

Daikin Industries has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Bel Fuse has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500.

Valuation and Earnings

This table compares Daikin Industries and Bel Fuse”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Daikin Industries $33.31 billion 1.41 $1.75 billion $0.62 25.81
Bel Fuse $675.46 million 4.83 $61.54 million $4.39 58.48

Daikin Industries has higher revenue and earnings than Bel Fuse. Daikin Industries is trading at a lower price-to-earnings ratio than Bel Fuse, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

58.4% of Bel Fuse shares are owned by institutional investors. 5.4% of Bel Fuse shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Daikin Industries pays an annual dividend of $0.14 per share and has a dividend yield of 0.9%. Bel Fuse pays an annual dividend of $0.28 per share and has a dividend yield of 0.1%. Daikin Industries pays out 22.6% of its earnings in the form of a dividend. Bel Fuse pays out 6.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a summary of current ratings and price targets for Daikin Industries and Bel Fuse, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Daikin Industries 0 0 0 0 0.00
Bel Fuse 0 1 5 0 2.83

Bel Fuse has a consensus target price of $307.25, suggesting a potential upside of 19.68%. Given Bel Fuse’s stronger consensus rating and higher probable upside, analysts clearly believe Bel Fuse is more favorable than Daikin Industries.

Summary

Bel Fuse beats Daikin Industries on 13 of the 16 factors compared between the two stocks.

About Daikin Industries

(Get Free Report)

Daikin Industries,Ltd. manufactures, distributes, and sells air-conditioning and refrigeration equipment, and chemical products in Japan, the Americas, China, Asia, Europe, Europe, and internationally. The company’s air-conditioning and refrigeration equipment products include room air-conditioning systems; air purifiers; heat-pump hot-water supply and room-heating systems; packaged air-conditioning systems; multiple air-conditioning systems for office buildings; air-conditioning systems for facilities and plants; heat reclaim ventilators; freezers; water chillers; turbo refrigerator equipment; air-handling units; air filters; industrial dust collectors; marine-type container refrigeration; and refrigerating and freezing showcases. The company’s chemical products comprising fluorocarbons, fluoroplastics, fluoroelastomers, fluoropaints, fluoro coating agents, semiconductor-etching products, water and oil repellent agents, pharmaceuticals and intermediates, and dry air suppliers. It also provides oil hydraulics products, including oil hydraulic pumps and valves, cooling equipment and systems, inverter-controlled pump motors, hydrostatic transmissions, and centralized lubrication units and systems; and defense products consisting of warheads, warhead parts for guided missiles, and home-use oxygen therapy equipment. In addition, the company offers after sales services. Daikin Industries,Ltd. was founded in 1924 and is headquartered in Osaka, Japan.

About Bel Fuse

(Get Free Report)

Bel Fuse Inc. designs, manufactures, markets, and sells products that power, protect, and connect electronic circuits. The company’s products are used in the networking, telecommunications, computing, general industrial, high-speed data transmission, military, commercial aerospace, transportation, and e-Mobility industries. It provides power solutions and protection products, including front-end power supplies, board-mount power products, industrial and transportation power products, external power products, and circuit protection products. The company also offers connectivity solutions, such as expanded beam fiber optic connectors, cable assemblies, and active optical devices; copper-based connectors/cable assemblies; radio frequency connectors, cable assemblies, microwave devices, and low loss cables; and ethernet, I/O, and industrial and power connectivity products. In addition, it provides magnetic solutions comprising integrated connector modules, power transformers, SMD power inductors and SMPS transformers, and ethernet discrete components. The company sells its products through direct strategic account managers, regional sales managers working with independent sales representative organizations, and authorized distributors in the United States, the People’s Republic of China, Macao, the United Kingdom, Slovakia, Germany, India, Switzerland, and internationally. Bel Fuse Inc. was incorporated in 1949 and is headquartered in West Orange, New Jersey.

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